Description
As JIM's corporate tax and financial analyst, you will need to have a clear understanding of the tax advantages and disadvantages of the C corporation form of business and the risks associated with being a multinational corporation.
- What are the advantages and disadvantages of being a C corporation as it relates to taxes?
- What are the exchange currency risks of being a multinational corporation?
600 words, excluding references
Explanation & Answer
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Running head: TAX ACCOUNTING INFORMATION IN BUSINESS PLANNING
Name
Institutional Affiliation
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TAX ACCOUNTING INFORMATION IN BUSINESS PLANNING
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Tax Accounting Information in Business Planning
Tax Advantages and Disadvantages of a C Corporation
A C Corporation is a type of business set-up that is an independent legal entity from its
owners. Therefore, a C corporation can be viewed as a legal person in the view of tax laws, can
enter into contracts, own property, and sue and be sued in its own name (Berk & DeMarzo, 2007).
With regards to tax laws, a C corporation must pay taxes in its own name as the taxes of the C
Corporation are taxed separately from its owners.
The tax advantages of C Corporations are as follows: A C Corporation is usually taxed at
lower tax rates that the other types of corporations for the first $75,000 of profits earned. This is
specifically a great benefit to small businesses whose profits fall below this threshold since they
can sav...
